Leabrand Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05207282 (England and Wales)

Financial Statements

for the Year Ended 31 August 2020

for

Leabrand Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Commercial Solutions Limited

Mrs P K Cheema

SECRETARY:

Mrs P K Cheema

REGISTERED OFFICE:

New Marlborough House

90C Wrotham Road

Gravesend

Kent

DA11 0QQ

REGISTERED NUMBER:

05207282 (England and Wales)

AUDITORS:

Elliotts Shah

Statutory Auditor

Chartered Accountants

4th Floor

167 Fleet Street

London

EC4A 2EA

FIXED ASSETS

Tangible assets

4

12,274

15,769

CURRENT ASSETS

Debtors

5

3,723,927

5,148,976

Cash at bank and in hand

1,485,013

524,750

5,208,940

5,673,726

CREDITORS

Amounts falling due within one year

6

2,750,178

3,270,515

NET CURRENT ASSETS

2,458,762

2,403,211

TOTAL ASSETS LESS CURRENT LIABILITIES

2,471,036

2,418,980

PROVISIONS FOR LIABILITIES

2,332

-

NET ASSETS

2,468,704

2,418,980

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

2,468,703

2,418,979

SHAREHOLDERS' FUNDS

2,468,704

2,418,980

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 August 2021 and were signed on its behalf by:

Mrs P K Cheema - Director

1.	STATUTORY INFORMATION

Leabrand Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentation currency is £ sterling.

Significant judgements and estimates

In the application of the Company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements in applying the Company's accounting policies

The directors conclude that there are no critical judgements in applying the Company's accounting policies.

Key source of estimation uncertainty - provision for debtors

The recoverability of the inter-company debts have been assessed on the basis of forecasted cash flows expected from the inter-companies for all periods in place and committed to upon signing of the financial statements for the year ended 31 August 2020. This assessment has estimated that the are entities are expected to be profitable and there will be sufficient cash to cover all inter-company loans.

Determining whether debtor balances are recoverable requires estimations based on up to date trading information. The directors use their knowledge of the business, the trading environment and future projections to assess whether provision is necessary in these areas.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes.

Turnover from the rendering of services in the form of engineers and other labour related activities is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

The company is current carrying out an exercise dealing with variances identified on accounts with customers between applications generated by in house by the company and the self billing system operated by the customers. The differences are not included in the turnover. The directors is continue working with customers to resolve this and income will be recognised as soon as it has been agreed with customers.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

-

25% on cost

Depreciation policy has been changed from 20% reducing balance (in prior year) to 25% straight line basis. The directors consider the change in policy has not had material impact to the financial statements.

IMPAIRMENT OF ASSETS

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment , the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

The business generates positive cash flow from its operating activities and is not reliant on external sources of finance. Cash on the balance sheet at the year end was £1,458,013 (2019: £524,751).

The directors have reviewed future projections which they feel adequately reflects the current uncertain economic environment and the likely cash generation and needs of the business. . The directors are satisfied that there will be taking account of the cash held at the year end and that likely to be generated by the business in the ensuring period to have sufficient cash resources generated from its operations to enable the company to continue without the requirement for any external finance.

After considering all relevant uncertainties, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and loans to related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 17 (2019 - 24 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 September 2019

19,644

Additions

12,948

Disposals

(10,933

)

At 31 August 2020

21,659

DEPRECIATION

At 1 September 2019

3,875

Charge for year

5,510

At 31 August 2020

9,385

NET BOOK VALUE

At 31 August 2020

12,274

At 31 August 2019

15,769

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

10,361

31,508

Amounts owed by group undertakings

45,180

45,180

Other related parties

1,908,951

2,990,557

Tax

17,859

-

Prepayments and accrued income

1,741,576

2,081,731

3,723,927

5,148,976

Amounts owed by group undertakings are unsecured, interest free, and repayable on demand.

Other related parties represents amount due from Havenhill Ltd, a company under common control by the director.

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

119,364

124,489

Amounts owed to group undertakings

1,669,215

2,237,585

Tax

-

95,039

Social security and other taxes

10,744

11,301

VAT

512,047

378,214

Other creditors

14,913

9,037

Accrued expenses

423,895

414,850

2,750,178

3,270,515

Amounts owed to group undertakings are unsecured, interest free, and repayable on demand.

7.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

We would draw to your attention that the company continue its support to its fellow group of companies and other related parties. As at the year end, amount due by other related parties were £1.75m. The financial statement do not include any adjustment that would result from a failure to recover these debts or the level of support required from these companies were to increase.

William Wan (Senior Statutory Auditor)

for and on behalf of Elliotts Shah

8.	PENSION COMMITMENTS

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charged for the period represents contributions payable by the company to the scheme and amounted to £6,232 (2019: £4,621). There were £1,161 outstanding contribution relating to the month of August 2020 at the financial period end.

9.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

At the year end, £1,908,951 (2019: £2,990,557) was owed by other related parties. During the year, purchases of £1,410,337 (2019: restated £2,320,243) were made from other related parties.

10.	POST BALANCE SHEET EVENTS

Post the year end date, the Cheema Group has restructured its operation as some of the projects coming to an end. Cheema Services Limited has transferred most of its operational staff under its payroll to Leabrand Limited in 2021 resulting lesser recharges in the future between the two fellow companies..

11.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr S S Cheema.

Cheema Holdings Limited is regarded by the director as being the Company's ultimate parent company, a company registered in England and Wales, New Marlborough House, 90c Wrotham Road, Gravesend, DA11 OQQ.